The Average Budget of a Middle Class Family in California

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With inflation and other rising costs to pay for living expenses, families may need to budget more carefully in order to make ends meet. California is no different.

Whether you’re moving to the state or trying to best understand the costs, knowing what you need to spend in California as a family is crucial. That way, you can plan carefully, whether it means cutting back in some areas or finding ways to increase your income.

Budget Breakdown

The 2024 Cost of California Report published by the Transparency Foundation found that families face higher costs in the state, an average of $26,478 per year. A family of three faced an increase of an additional 5.9% inflation above the national inflation average rate. 

More specifically, on average, Californian families spend on average about $9,668 per month, compared to the national average of around $7,331. 

Here’s a further breakdown of some of the monthly expenses families spend on average:

• Housing (rent): $2,555
• Housing (mortgage): $4,536
• Electricity: $199.59
• Healthcare: $600 per person
• Utilities (water): $81
• Groceries: $458.71 per person
• Childcare: $1,412.08
• Car insurance: $201.33
• Car payment (new vehicle): $734
• Car payment (used vehicle): $525
• Homeowners’ insurance: $216.50
• Renter’s insurance: $17

More Considerations

Of course, average costs also vary depending on the county you live in. Another report, The Maven Collective’s Family Sustainability Calculator, allows you to look up costs based on the county and number of people in your household.

For example, Modoc County is one of the “cheapest” counties in California, with an average housing cost of $958 per month, $1,234 for food, and $772 for transportation for a household of two adults and two school-aged children. 

San Francisco County is the most expensive for the same number of household members, with $3,201 average housing cost and $1,507 per month for food. However, the average transportation cost at $196 could be because of their public transportation. 

That being said, the average costs may not accurately reflect what you pay. That’s why it’s important to track your spending to see exactly where and how much money your family spends. 

What You Can Do To Boost Your Income

What if you’re among the 4.6 million California residents that aren’t paid enough to afford these average costs? 

While there aren’t any easy answers, the truth is that it may be time to reconsider your income. Is it possible to find a way to increase it, whether it means trying to ask for a raise at your current job, finding a new one that pays more, or temporarily taking on a side job? 

If it’s at all possible to reconfigure your budget, try to look at your largest fixed costs first. Since housing tends to be most families’ highest cost, see if there’s a way you can lower it. Perhaps it may be feasible to negotiate with your landlord to lower your lease, or move somewhere with lower monthly rent. 

Or, shop around insurance providers to see if you can find a policy that offers the same coverage at a lower cost. 

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